| Military retirement pay | Partial exemption only. Retired members of the armed forces, National Guard or Reserve who live in Montana can exclude the smaller of half their military retirement income or their Montana wages, for up to five years. You must have become a Montana resident after June 30, 2023, or already lived there before your retired pay started. Survivor Benefit Plan annuities get a 50% subtraction under the same timing rule. Outside that exemption, retirement pay is taxed like other income. |
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| Property tax | The Montana Disabled Veteran (MDV) program lowers the property tax rate on your primary home if you are rated 100% by the VA (or paid at the 100% rate), own the home and live in it at least seven months a year. The cut is 100%, 80%, 70% or 50% depending on income. For 2026, a single veteran gets the full 100% at federal AGI up to $48,152 (married or head of household $57,781, surviving spouse $40,127). File with the Montana Department of Revenue by April 15. |
| Disabled Veteran property tax reduction Taxes | 100% VA-rated veterans who own and live in their home can have the property tax rate cut by up to 100%, based on income. Apply to the Department of Revenue by April 15. |
| Working military retiree exemption Taxes | New-to-Montana working retirees can exclude up to half of military retirement income (limited by Montana wages) for five years. |
| Montana Veterans' Homes Health & Homes | State veterans homes in Columbia Falls (117 beds), Glendive (80 beds) and Butte (60 beds). Honorably discharged veterans, spouses and surviving spouses age 55 or older can apply. |
| State veterans cemeteries Burial | State cemeteries at Fort Harrison, Miles City and Missoula. No Montana residency is required for burial. |
| University System tuition waivers Education | Waivers at Montana University System schools for Guard members, honorably discharged Montana-resident veterans (after VA education benefits run out) and war orphans. They cover tuition only, not fees. |
| Disabled veteran plates and fee waivers Vehicles & ID | Disabled Veteran plate for Purple Heart recipients rated 50%+ or veterans rated 100%, with no renewal fees. 100%-rated veterans may also get registration fee waivers. |
| Hunting and fishing breaks Recreation | Combat-disabled veterans pay half price for certain deer and antelope licenses. Resident Purple Heart recipients can hunt game birds and fish with only a Wildlife Conservation License and an Aquatic Invasive Species pass. |
| Public hiring preference Jobs | State and local employers add 5 points for veterans and 10 points for disabled veterans or eligible relatives on scored hiring. |
Last checked 2026-11. State rules change often; confirm with Montana Veterans Affairs Division before you rely on any benefit.
Sources
- https://archive.legmt.gov/content/Committees/Interim/2025-2026/RIC/Meetings/November_12_13_2025/veteran-tax-benefits.pdf
- https://revenue.mt.gov/news/tnycu/military-retirement-exemption-for-working-military-retirees-beginning-in-tax-year-2024
- https://myairforcebenefits.us.af.mil/Benefit-Library/State/Territory-Benefits/Montana